Signed by Governor Jerry Brown, Jr.

Vote Smart's Synopsis:

Vote to pass a bill that authorizes the Labor Commissioner to enforce the payment of wages.

Highlights:

• Authorizes the Labor Commissioner to use the following procedures to collect any outstanding amount of a judgment, including but not limited to, the following procedures (Sec. 1-3, 5 & 6):
• Creating a lien on any real property in California of an employer for the full amount of any wages, interests, penalties and attorney’s fees claimed to be owed to an employee.
• Mailing a notice of levy to an individual having in their possession any credits, money, or property belonging to the judgement debtor;  
• Investigating employee complaints and providing for a hearing; or
• Issuing and serving a stop order to an employer.

• Requires the Labor Commissioner to provide at least 20 days preliminary notice to the employer before creating a lien (Sec. 6).

• Requires an individual upon whom a levy has been noticed to surrender the credits, money, or property having in his or her possession to the Labor Commissioner or pay to the Labor Commissioner the amount of any debt owed to the judgement debtor within 10 days of service of the levy (Sec. 2).

• Prohibits an employer from conducting business if the nonpayment of wages for work performed remains unsatisfied after 10 days after the time to appeal has expired (Sec. 4).

• Specifies that an employer who fails to stop conducting business is guilty of a misdemeanor punishable by imprisonment not exceeding 60 days,  a fine not exceeding $10,000 or both (Sec. 5).

• Authorizes an employer to continue business when a bond of greater than $150,000 from a surety company is obtained (Sec. 4).

• Establishes the following penalties for an employer who conducts business if the nonpayment of wages for work performed remains unsatisfied (Sec. 4):
• A penalty of $2,500 for an initial violation; and
• A penalty of $100 for each additional calendar day after the initial violation, not to exceed $100,000.

• Requires an employer to pay an employee for any time lost, not exceeding 10 days, due to a stop order (Sec. 5).

• Requires the Division of Labor Standards Enforcement to inquire into a claim that is filed under a fictitious business name and determine whether the name of the person is the legal name under the proper license, registration and other authorization to do business (Sec. 3).

Full Bill Text